Attached files

file filename
8-K - FIRST MERCHANTS CORPORATION - 4TH QTR 2012 EARNINGS RELEASE - FIRST MERCHANTS CORPf8k4thqtr2012earningsrelease.htm
 
N / E / W / S     R / E / L / E / A / S / E

January 24, 2013

FOR IMMEDIATE RELEASE
For more information, contact:
David L. Ortega, First Vice President/Director of Investor Relations
765-378-8937
http://www.firstmerchants.com/

SOURCE: First Merchants Corporation, Muncie, Indiana

FIRST MERCHANTS CORPORATION ANNOUNCES 2012 RECORD NET INCOME OF MORE THAN $40 MILLION DOLLARS

First Merchants Corporation (NASDAQ – FRME) has reported full year 2012 record net income available to common shareholders of $40.6 million compared to $9.0 million earned in 2011.

Michael C. Rechin, President and Chief Executive Officer, stated, “Our 2012 results represent a return to high performance banking.  Our Board of Directors, management team and dedicated employees are very pleased to have established record high net income results for our shareholders.  Beyond the level of net income, our highlights for 2012 include a successful closing of an immediately accretive in-market acquisition, an increase in the rate of organic loan growth and an increase in the level of our common dividend.”  Rechin also stated, “our team is encouraged by the momentum we take into 2013 despite the challenging low interest rate environment.”

Year-to-date earnings per share totaled $1.41, a $1.07 per share increase over the prior year total of $.34 per share.  Within the $1.41 earnings per share, $.21 is related to the one-time gain on the Corporation’s FDIC purchase and assumption agreement with SCB Bank in Shelbyville, Indiana, during the first quarter of 2012.  The balance of our 2012 results represent increased levels of earnings from our relationship-driven banking model that produced higher levels of revenue from multiple income sources.

Fourth quarter 2012 earnings per share of $.32 compared to $.24 per share during the same period in 2011.  Net income available to common shareholders totaled $9.2 million for the quarter, a $2.7 million increase over the fourth quarter of 2011.

Total assets equaled $4.3 billion, as loans and investments totaled $2.9 billion and $874 million, respectively.  Loans increased for the fifth consecutive quarter due to the addition of calling officers and economic improvements in our marketplace. The Corporation’s loan-to-deposit ratio and loan-to-asset ratio remained steady at 87 percent and 67 percent, respectively.

Net-interest income totaled $38.3 million for the fourth quarter of 2012 and net-interest margin remained strong totaling 4.10 percent as yields on earning assets totaled 4.58 percent and the cost of supporting liabilities totaled .48 percent.  Discount accretion resulting from the SCB transaction added $1.3 million, or 13 basis points, to net-interest income and net-interest margin for the fourth quarter of 2012.  YTD net-interest income totaled $152.3 million, an increase of $9.0 million over 2011.

Non-interest income totaled $14.2 million for the fourth quarter of 2012 and $64.3 million year-to-date.  After normalizing for bond gains and the first quarter 2012 FDIC gain, non-interest income for 2012 improved by $5.7 million, or 12 percent over 2011.  Gains from the sale of mortgage loans accounted for $3.2 million of the increase as our investment in mortgage origination and fulfillment maximized the advantageous mortgage rate environment.  Total non-interest expenses of $137.1 million increased by $1.2 million, or less than 1 percent, during 2012.

Provision expense totaled $4.5 million for the fourth quarter 2012 and $18.5 million year-to-date, compared to $5.9 million and $22.6 million in 2011.  Net charge-offs were $4.6 million for the fourth quarter of 2012 and $20.1 million year-to-date, compared to $8.0 million and $34.7 million in 2011.  The allowance for loan losses is $69.4 million, or 2.37 percent of total loans and 130 percent of non-accrual loans, the highest coverage ratio since 2006.

As of December 31, 2012, the Corporation’s total risk-based capital equaled 16.34 percent, Tier 1 common risk-based capital equaled 9.62 percent, and tangible common equity ratio totaled 7.55 percent.  As of December 31, 2011 the Corporation’s total risk-based capital equaled 16.54 percent, Tier 1 common risk-based capital equaled 8.83 percent, and tangible common equity ratio totaled 6.84 percent.
 
 
 
 

 

 
CONFERENCE CALL

First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 2:30 p.m. (ET) on Thursday, January 24, 2013.

To participate, dial (Toll Free) 888-317-6016 and reference First Merchants Corporation’s fourth quarter earnings release. International callers please call +1 412-317-6016. A replay of the call will be available until January 24, 2014. To access a replay of the call, US participants should dial (Toll Free) 877-344-7529 or for International participants, dial +1 412-317-0088. The replay passcode is 10023446.

In order to view the web cast and presentation slides, please go to http://services.choruscall.com/links/frme130124.html during the time of the call.

During the call, Forward-Looking Statements about the relative business outlook may be made. These Forward-Looking Statements and all other statements made during the call that do not concern historical facts, are subject to risks and uncertainties that may materially affect actual results.

Specific Forward-Looking Statements include, but are not limited to, any indications regarding the Financial Services industry, the economy and future growth of the balance sheet or income statement.

Detailed financial results are reported on the attached pages.


About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation is comprised of First Merchants Bank, N.A., which also operates as Lafayette Bank & Trust, Commerce National Bank, and First Merchants Trust Company as divisions of First Merchants Bank, N.A.  First Merchants Corporation also operates First Merchants Insurance Group, a full-service property casualty, personal lines, and healthcare insurance agency.

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

* * * *

 
 

 


CONSOLIDATED BALANCE SHEETS
           
(Dollars In Thousands)
 
December 31,
 
   
2012
   
2011
 
ASSETS
           
Cash and cash equivalents
 
$
101,460
   
$
73,312
 
Interest-bearing time deposits
   
38,443
     
52,851
 
Investment securities
   
874,363
     
946,400
 
Mortgage loans held for sale
   
22,300
     
17,864
 
Loans
   
2,902,209
     
2,713,415
 
Less: Allowance for loan losses
   
(69,366
)
   
(70,898
)
Net loans
   
2,832,843
     
2,642,517
 
Premises and equipment
   
52,749
     
51,013
 
Federal Reserve and Federal Home Loan Bank stock
   
32,785
     
31,270
 
Interest receivable
   
16,367
     
17,723
 
Core deposit intangibles and goodwill
   
149,529
     
150,471
 
Cash surrender value of life insurance
   
125,397
     
124,329
 
Other real estate owned
   
13,263
     
16,289
 
Tax asset, deferred and receivable
   
30,867
     
36,424
 
Other assets
   
14,455
     
12,613
 
TOTAL ASSETS
 
$
4,304,821
   
$
4,173,076
 
LIABILITIES
               
Deposits:
               
Noninterest-bearing
 
$
801,597
   
$
646,508
 
Interest-bearing
   
2,544,786
     
2,488,147
 
Total Deposits
   
3,346,383
     
3,134,655
 
Borrowings:
               
Federal funds purchased
   
18,862
         
Securities sold under repurchase agreements
   
141,828
     
156,305
 
Federal Home Loan Bank advances
   
94,238
     
138,095
 
Subordinated debentures and term loans
   
112,161
     
194,974
 
Total Borrowings
   
367,089
     
489,374
 
Interest payable
   
1,841
     
2,925
 
Other liabilities
   
37,272
     
31,655
 
Total Liabilities
   
3,752,585
     
3,658,609
 
STOCKHOLDERS' EQUITY
               
Preferred Stock, no-par value, $1,000 liquidation value:
               
Authorized -- 500,000 shares
               
Senior Non-Cumulative Perpetual Preferred Stock, Series B
               
Issued and outstanding - 90,782.94 shares
   
90,783
     
90,783
 
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:
               
Authorized -- 600 shares
               
Issued and outstanding - 125 shares
   
125
     
125
 
Common Stock, $.125 stated value:
               
Authorized -- 50,000,000 shares
               
Issued and outstanding - 28,692,616 and 28,559,707 shares
   
3,587
     
3,570
 
Additional paid-in capital
   
256,843
     
254,874
 
Retained earnings
   
206,397
     
168,717
 
Accumulated other comprehensive loss
   
(5,499
)
   
(3,602
)
Total Stockholders' Equity
   
552,236
     
514,467
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
4,304,821
   
$
4,173,076
 
 

 
 
 

 
 
 
CONSOLIDATED STATEMENTS OF INCOME
 
Three Months Ended
   
Twelve Months Ended
 
(Dollars In Thousands, Except Per Share Amounts)
 
December 31,
   
December 31,
 
   
2012
   
2011
   
2012
   
2011
 
INTEREST INCOME
                       
Loans receivable:
                       
Taxable
 
$
36,085
   
$
36,497
   
$
146,745
   
$
149,716
 
Tax-exempt
   
122
     
93
     
480
     
528
 
Investment securities:
                               
Taxable
   
3,809
     
4,565
     
17,027
     
19,230
 
Tax-exempt
   
2,544
     
2,550
     
10,189
     
10,167
 
Federal funds sold
                           
3
 
Deposits with financial institutions
   
31
     
54
     
100
     
282
 
Federal Reserve and Federal Home Loan Bank stock
   
373
     
314
     
1,408
     
1,319
 
Total Interest Income
   
42,964
     
44,073
     
175,949
     
181,245
 
INTEREST EXPENSE
                               
Deposits
   
3,234
     
4,505
     
14,800
     
22,281
 
Federal funds purchased
   
7
     
3
     
69
     
25
 
Securities sold under repurchase agreements
   
204
     
363
     
907
     
1,511
 
Federal Home Loan Bank advances
   
501
     
1,114
     
2,624
     
4,181
 
Subordinated debentures and term loans
   
753
     
1,908
     
5,213
     
9,892
 
Total Interest Expense
   
4,699
     
7,893
     
23,613
     
37,890
 
NET INTEREST INCOME
   
38,265
     
36,180
     
152,336
     
143,355
 
Provision for loan losses
   
4,505
     
5,855
     
18,534
     
22,630
 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
   
33,760
     
30,325
     
133,802
     
120,725
 
OTHER INCOME
                               
Service charges on deposit accounts
   
2,962
     
3,027
     
11,587
     
11,972
 
Fiduciary activities
   
1,984
     
1,804
     
7,891
     
7,650
 
Other customer fees
   
2,757
     
2,572
     
11,233
     
10,024
 
Commission income
   
1,454
     
1,220
     
6,224
     
5,660
 
Earnings on cash surrender value of life insurance
   
693
     
803
     
3,418
     
2,596
 
Net gains and fees on sales of loans
   
3,513
     
2,747
     
10,628
     
7,418
 
Net realized gains on sales of available for sale securities
   
255
     
290
     
2,389
     
2,439
 
Other-than-temporary impairment on available for sale securities
                           
(400
)
Gain on FDIC modified whole bank transaction
                   
9,124
         
Other income
   
588
     
508
     
1,808
     
1,761
 
Total Other Income
   
14,206
     
12,971
     
64,302
     
49,120
 
OTHER EXPENSES
                               
Salaries and employee benefits
   
20,320
     
19,035
     
79,398
     
74,735
 
Net occupancy
   
2,494
     
2,428
     
10,186
     
10,118
 
Equipment
   
1,942
     
1,672
     
7,201
     
6,794
 
Marketing
   
616
     
650
     
2,158
     
2,002
 
Outside data processing fees
   
1,361
     
1,377
     
5,656
     
5,671
 
Printing and office supplies
   
321
     
340
     
1,169
     
1,242
 
Core deposit amortization
   
489
     
591
     
1,927
     
3,548
 
FDIC assessments
   
738
     
775
     
3,509
     
5,531
 
Other real estate owned and credit-related expenses
   
1,766
     
2,569
     
8,178
     
10,614
 
Other expenses
   
4,456
     
3,999
     
17,733
     
15,683
 
Total Other Expenses
   
34,503
     
33,436
     
137,115
     
135,938
 
INCOME BEFORE INCOME TAX
   
13,463
     
9,860
     
60,989
     
33,907
 
Income tax expense
   
3,153
     
2,299
     
15,867
     
8,655
 
NET INCOME
   
10,310
     
7,561
     
45,122
     
25,252
 
Loss on CPP unamortized discount
                           
(1,401
)
Loss on extinguishment of trust preferred securities
                           
(10,857
)
Preferred stock dividends and discount accretion
   
(1,135
)
   
(1,135
)
   
(4,539
)
   
(3,981
)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
 
$
9,175
   
$
6,426
   
$
40,583
   
$
9,013
 
 
Per Share Data:
                               
Basic Net Income Available to Common Stockholders
 
$
0.32
   
$
0.24
   
$
1.42
   
$
0.34
 
Diluted Net Income Available to Common Stockholders
 
$
0.32
   
$
0.24
   
$
1.41
   
$
0.34
 
Cash Dividends Paid
 
$
0.03
   
$
0.01
   
$
0.10
   
$
0.04
 
Average Diluted Shares Outstanding (in thousands)
   
28,930
     
28,700
     
28,847
     
26,694
 
 

 
 

 

 
FINANCIAL HIGHLIGHTS
                       
(Dollars in thousands)
 
Three Months Ended
   
Twelve Months Ended
 
   
December 31,
   
December 31,
 
   
2012
   
2011
   
2012
   
2011
 
NET CHARGE OFF'S
 
$
4,632
   
$
8,031
   
$
20,066
   
$
34,709
 
                                 
AVERAGE BALANCES:
                               
Total Assets
 
$
4,293,082
   
$
4,200,685
   
$
4,245,996
   
$
4,143,850
 
Total Loans
   
2,867,793
     
2,719,155
     
2,819,816
     
2,748,684
 
Total Earning Assets
   
3,875,969
     
3,766,352
     
3,833,174
     
3,744,027
 
Total Deposits
   
3,321,997
     
3,165,505
     
3,263,020
     
3,175,762
 
Total Stockholders' Equity
   
551,414
     
513,366
     
535,497
     
478,440
 
                                 
FINANCIAL RATIOS:
                               
Return on Average Assets
   
0.85
%
   
0.61
%
   
0.96
%
   
0.22
%
Return on Average Stockholders' Equity
   
6.66
     
5.01
     
7.58
     
1.88
 
Return on Average Common Stockholders' Equity
   
7.97
     
6.08
     
9.13
     
2.22
 
Average Earning Assets to Average Assets
   
90.28
     
89.66
     
90.28
     
90.35
 
Allowance for Loan Losses as % of Total Loans
   
2.37
     
2.60
     
2.37
     
2.60
 
Net Charge Off's as % of Average Loans (Annualized)
   
0.65
     
1.18
     
0.71
     
1.26
 
Average Stockholders' Equity to Average Assets
   
12.84
     
12.22
     
12.61
     
11.55
 
Tax Equivalent Yield on Earning Assets
   
4.58
     
4.83
     
4.74
     
4.99
 
Cost of Supporting Liabilities
   
0.48
     
0.84
     
0.62
     
1.01
 
Net Interest Margin (FTE) on Earning Assets
   
4.10
     
3.99
     
4.12
     
3.98
 
 


NON-PERFORMING ASSETS
                             
(Dollars In Thousands)
 
December 31,
   
September 30,
   
June 30,
   
March 31,
   
December 31,
 
   
2012
   
2012
   
2012
   
2012
   
2011
 
Non-Accrual Loans
 
$
53,399
   
$
56,999
   
$
63,127
   
$
74,456
   
$
69,592
 
Renegotiated Loans
   
12,681
     
6,871
     
3,921
     
6,695
     
14,308
 
Non-Performing Loans (NPL)
   
66,080
     
63,870
     
67,048
     
81,151
     
83,900
 
Other Real Estate Owned
   
13,263
     
13,780
     
14,183
     
15,628
     
16,289
 
Non-Performing Assets (NPA)
   
79,343
     
77,650
     
81,231
     
96,779
     
100,189
 
90+ Days Delinquent
   
2,037
     
1,974
     
665
     
253
     
580
 
NPAS & 90 Day Delinquent
 
$
81,380
   
$
79,624
   
$
81,896
   
$
97,032
   
$
100,769
 
 
Loan Loss Reserve
 
$
69,366
   
$
69,493
   
$
70,143
   
$
70,369
   
$
70,898
 
Quarterly Net Charge-offs
   
4,632
     
5,259
     
4,771
     
5,404
     
8,031
 
NPAs / Actual Assets %
   
1.84
%
   
1.83
%
   
1.92
%
   
2.28
%
   
2.40
%
NPAs & 90 Day / Actual Assets %
   
1.89
%
   
1.87
%
   
1.93
%
   
2.29
%
   
2.41
%
NPAs / Actual Loans and REO %
   
2.70
%
   
2.70
%
   
2.87
%
   
3.42
%
   
3.65
%
Loan Loss Reserves / Actual Loans (%)
   
2.37
%
   
2.43
%
   
2.49
%
   
2.50
%
   
2.60
%
Net Charge Off's as % of Average Loans (Annualized)
   
0.65
%
   
0.74
%
   
0.68
%
   
0.78
%
   
1.18
%

 
 

 


CONSOLIDATED BALANCE SHEETS
                             
(Dollars In Thousands)
 
December 31,
   
September 30,
   
June 30,
   
March 31,
   
December 31,
 
   
2012
   
2012
   
2012
   
2012
   
2011
 
ASSETS
                             
Cash and cash equivalents
 
$
101,460
   
$
57,027
   
$
68,493
   
$
60,991
   
$
73,312
 
Interest-bearing time deposits
   
38,443
     
35,324
     
41,760
     
34,290
     
52,851
 
Investment securities
   
874,363
     
928,716
     
944,321
     
960,032
     
946,400
 
Mortgage loans held for sale
   
22,300
     
27,711
     
15,278
     
22,138
     
17,864
 
Loans
   
2,902,209
     
2,836,324
     
2,797,634
     
2,792,989
     
2,713,415
 
Less: Allowance for loan losses
   
(69,366
)
   
(69,493
)
   
(70,143
)
   
(70,369
)
   
(70,898
)
Net loans
   
2,832,843
     
2,766,831
     
2,727,491
     
2,722,620
     
2,642,517
 
Premises and equipment
   
52,749
     
51,373
     
51,335
     
51,541
     
51,013
 
Federal Reserve and Federal Home Loan Bank stock
   
32,785
     
32,824
     
33,033
     
33,026
     
31,270
 
Interest receivable
   
16,367
     
17,519
     
16,506
     
16,730
     
17,723
 
Core deposit intangibles and goodwill
   
149,529
     
150,019
     
150,006
     
150,486
     
150,471
 
Cash surrender value of life insurance
   
125,397
     
124,702
     
124,018
     
123,355
     
124,329
 
Other real estate owned
   
13,263
     
13,780
     
14,183
     
15,628
     
16,289
 
Tax asset, deferred and receivable
   
30,867
     
29,344
     
32,003
     
32,112
     
36,424
 
Other assets
   
14,455
     
14,998
     
13,996
     
13,417
     
12,613
 
TOTAL ASSETS
 
$
4,304,821
   
$
4,250,168
   
$
4,232,423
   
$
4,236,366
   
$
4,173,076
 
LIABILITIES
                                       
Deposits:
                                       
Noninterest-bearing
   
801,597
   
$
679,818
   
$
684,101
   
$
677,643
   
$
646,508
 
Interest-bearing
   
2,544,786
     
2,514,933
     
2,604,797
     
2,601,935
     
2,488,147
 
Total Deposits
   
3,346,383
     
3,194,751
     
3,288,898
     
3,279,578
     
3,134,655
 
Borrowings:
                                       
Federal funds purchased
   
18,862
     
57,024
     
652
     
10,936
         
Securities sold under repurchase agreements
   
141,828
     
153,454
     
160,127
     
139,308
     
156,305
 
Federal Home Loan Bank advances
   
94,238
     
145,467
     
96,847
     
131,496
     
138,095
 
Subordinated debentures and term loans
   
112,161
     
112,169
     
115,951
     
115,969
     
194,974
 
Total Borrowings
   
367,089
     
468,114
     
373,577
     
397,709
     
489,374
 
Interest payable
   
1,841
     
1,591
     
2,168
     
2,094
     
2,925
 
Other liabilities
   
37,272
     
38,857
     
32,104
     
29,044
     
31,655
 
Total Liabilities
   
3,752,585
     
3,703,313
     
3,696,747
     
3,708,425
     
3,658,609
 
STOCKHOLDERS' EQUITY
                                       
Preferred Stock, no-par value, $1,000 liquidation value:
                                       
Authorized -- 500,000 shares
                                       
Senior Non-Cumulative Perpetual Preferred Stock, Series B
                                       
Issued and outstanding
   
90,783
     
90,783
     
90,783
     
90,783
     
90,783
 
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value:
                                       
Authorized -- 600 shares
                                       
Issued and outstanding
   
125
     
125
     
125
     
125
     
125
 
Common Stock, $.125 stated value:
                                       
Authorized -- 50,000,000 shares
                                       
Issued and outstanding
   
3,587
     
3,584
     
3,580
     
3,578
     
3,570
 
Additional paid-in capital
   
256,843
     
256,290
     
255,632
     
255,116
     
254,874
 
Retained earnings
   
206,397
     
198,094
     
188,863
     
181,664
     
168,717
 
Accumulated other comprehensive loss
   
(5,499
)
   
(2,021
)
   
(3,307
)
   
(3,325
)
   
(3,602
)
Total Stockholders' Equity
   
552,236
     
546,855
     
535,676
     
527,941
     
514,467
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
4,304,821
   
$
4,250,168
   
$
4,232,423
   
$
4,236,366
   
$
4,173,076
 




 
 

 


CONSOLIDATED STATEMENTS OF INCOME
                             
(Dollars In Thousands, Except Per Share Amounts)
 
December 31,
   
September 30,
   
June 30,
   
March 31,
   
December 31,
 
   
2012
   
2012
   
2012
   
2012
   
2011
 
INTEREST INCOME
                             
Loans receivable:
                             
Taxable
 
$
36,085
   
$
38,160
   
$
36,652
   
$
35,848
   
$
36,497
 
Tax exempt
   
122
     
118
     
123
     
117
     
93
 
Investment securities:
                                       
Taxable
   
3,809
     
4,176
     
4,468
     
4,574
     
4,565
 
Tax exempt
   
2,544
     
2,532
     
2,551
     
2,562
     
2,550
 
Federal funds sold
                                       
Deposits with financial institutions
   
31
     
16
     
28
     
25
     
54
 
Federal Reserve and Federal Home Loan Bank stock
   
373
     
345
     
347
     
343
     
314
 
Total Interest Income
   
42,964
     
45,347
     
44,169
     
43,469
     
44,073
 
INTEREST EXPENSE
                                       
Deposits
   
3,234
     
3,517
     
3,939
     
4,110
     
4,505
 
Federal funds purchased
   
7
     
38
     
12
     
12
     
3
 
Securities sold under repurchase agreements
   
204
     
211
     
197
     
295
     
363
 
Federal Home Loan Bank advances
   
501
     
492
     
637
     
994
     
1,114
 
Subordinated debentures, revolving credit lines and term loans
   
753
     
1,187
     
1,331
     
1,942
     
1,908
 
Total Interest Expense
   
4,699
     
5,445
     
6,116
     
7,353
     
7,893
 
NET INTEREST INCOME
   
38,265
     
39,902
     
38,053
     
36,116
     
36,180
 
Provision for loan losses
   
4,505
     
4,609
     
4,545
     
4,875
     
5,855
 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
   
33,760
     
35,293
     
33,508
     
31,241
     
30,325
 
OTHER INCOME
                                       
Service charges on deposit accounts
   
2,962
     
2,913
     
2,893
     
2,819
     
3,027
 
Fiduciary activities
   
1,984
     
1,986
     
1,938
     
1,983
     
1,804
 
Other customer fees
   
2,757
     
2,740
     
3,150
     
2,586
     
2,572
 
Commission income
   
1,454
     
1,618
     
1,485
     
1,667
     
1,220
 
Earnings on cash surrender value of life insurance
   
693
     
685
     
662
     
1,378
     
803
 
Net gains and fees on sales of loans
   
3,513
     
2,849
     
2,314
     
1,952
     
2,747
 
Net realized gains on sales of available for sale securities
   
255
     
843
     
502
     
789
     
290
 
Gain on FDIC modified whole bank transaction
                           
9,124
         
Other income
   
588
     
639
     
221
     
360
     
508
 
Total Other Income
   
14,206
     
14,273
     
13,165
     
22,658
     
12,971
 
OTHER EXPENSES
                                       
Salaries and employee benefits
   
20,320
     
20,083
     
19,641
     
19,354
     
19,035
 
Net occupancy
   
2,494
     
2,568
     
2,473
     
2,651
     
2,428
 
Equipment
   
1,942
     
1,798
     
1,656
     
1,805
     
1,672
 
Marketing
   
616
     
536
     
564
     
442
     
650
 
Outside data processing fees
   
1,361
     
1,413
     
1,506
     
1,376
     
1,377
 
Printing and office supplies
   
321
     
287
     
294
     
267
     
340
 
Core deposit amortization
   
489
     
489
     
480
     
469
     
591
 
FDIC assessments
   
738
     
792
     
862
     
1,117
     
775
 
Other real estate owned and credit-related expenses
   
1,766
     
2,104
     
2,122
     
2,186
     
2,569
 
Other expenses
   
4,456
     
4,334
     
4,582
     
4,361
     
3,999
 
Total Other Expenses
   
34,503
     
34,404
     
34,180
     
34,028
     
33,436
 
INCOME BEFORE INCOME TAX
   
13,463
     
15,162
     
12,493
     
19,871
     
9,860
 
Income tax expense
   
3,153
     
3,926
     
3,288
     
5,500
     
2,299
 
NET INCOME
   
10,310
     
11,236
     
9,205
     
14,371
     
7,561
 
Preferred stock dividends and discount accretion
   
(1,135
)
   
(1,134
)
   
(1,135
)
   
(1,135
)
   
(1,135
)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
 
$
9,175
   
$
10,102
   
$
8,070
   
$
13,236
   
$
6,426
 
 
PER SHARE:
                                       
Basic Net Income Available to Common Stockholders
 
$
0.32
   
$
0.35
   
$
0.29
   
$
0.46
   
$
0.24
 
Diluted Net Income Available to Common Stockholders
 
$
0.32
   
$
0.35
   
$
0.28
   
$
0.46
   
$
0.24
 
Cash Dividends Paid
 
$
0.03
   
$
0.03
   
$
0.03
   
$
0.01
   
$
0.01
 
Average Diluted Shares Outstanding (in thousands)
   
28,930
     
28,888
     
28,815
     
28,755
     
28,700
 
 
FINANCIAL RATIOS:
                                       
Return on Average Assets
   
0.85
%
   
0.95
%
   
0.76
%
   
1.26
%
   
0.61
%
Return on Average Stockholders' Equity
   
6.66
     
7.47
     
6.07
     
10.23
     
5.01
 
Return on Average Common Stockholders' Equity
   
7.97
     
8.98
     
7.32
     
12.40
     
6.08
 
Average Earning Assets to Average Assets
   
90.28
     
90.36
     
90.30
     
90.16
     
89.66
 
Allowance for Loan Losses as % of Total Loans
   
2.37
     
2.43
     
2.49
     
2.50
     
2.60
 
Net Charge Off's as % of Average Loans (Annualized)
   
0.65
     
0.74
     
0.68
     
0.78
     
1.18
 
Average Stockholders' Equity to Average Assets
   
12.84
     
12.77
     
12.51
     
12.32
     
12.22
 
Tax Equivalent Yield on Earning Assets
   
4.58
     
4.89
     
4.75
     
4.74
     
4.83
 
Cost of Supporting Liabilities
   
0.48
     
0.57
     
0.64
     
0.78
     
0.84
 
Net Interest Margin (FTE) on Earning Assets
   
4.10
     
4.32
     
4.11
     
3.96
     
3.99
 
 

 
 

 

 
LOANS
                             
(Dollars In Thousands)
 
December 31,
   
September 30,
   
June 30,
   
March 31,
   
December 31,
 
   
2012
   
2012
   
2012
   
2012
   
2011
 
Commercial and industrial loans
 
$
622,579
   
$
592,517
   
$
552,353
   
$
546,304
   
$
532,523
 
Agricultural production financing and other loans to farmers
   
112,527
     
107,166
     
106,135
     
97,165
     
104,526
 
Real estate loans:
                                       
Construction
   
98,639
     
93,610
     
99,588
     
92,694
     
81,780
 
Commercial and farm land
   
1,266,682
     
1,241,054
     
1,219,114
     
1,229,195
     
1,194,230
 
Residential
   
473,537
     
475,272
     
480,917
     
498,354
     
481,493
 
Home Equity
   
203,406
     
204,888
     
207,250
     
210,564
     
191,631
 
Individuals' loans for household and other personal expenditures
   
75,748
     
77,171
     
83,933
     
78,711
     
84,172
 
Lease financing receivables, net of unearned income
   
2,590
     
2,970
     
2,976
     
3,112
     
3,555
 
Other loans
   
46,501
     
41,676
     
45,368
     
36,890
     
39,505
 
Loans
   
2,902,209
     
2,836,324
     
2,797,634
     
2,792,989
     
2,713,415
 
Allowance for loan losses
   
(69,366
)
   
(69,493
)
   
(70,143
)
   
(70,369
)
   
(70,898
)
NET LOANS
 
$
2,832,843
   
$
2,766,831
   
$
2,727,491
   
$
2,722,620
   
$
2,642,517
 
  
 
DEPOSITS
                             
(Dollars In Thousands)
 
December 31,
   
September 30,
   
June 30,
   
March 31,
   
December 31,
 
   
2012
   
2012
   
2012
   
2012
   
2011
 
Demand deposits
 
$
1,646,756
   
$
1,455,568
   
$
1,521,194
   
$
1,470,938
   
$
1,438,513
 
Savings deposits
   
831,952
     
837,409
     
822,299
     
801,935
     
757,166
 
Certificates and other time deposits of $100,000 or more
   
236,470
     
256,077
     
261,156
     
269,796
     
264,787
 
Other certificates and time deposits
   
502,927
     
527,304
     
546,182
     
566,934
     
551,247
 
Brokered deposits
   
128,278
     
118,393
     
138,067
     
169,975
     
122,942
 
TOTAL DEPOSITS
 
$
3,346,383
   
$
3,194,751
   
$
3,288,898
   
$
3,279,578
   
$
3,134,655